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HowIt Works Panels Inverters Batteries There are essentially two types of power in ahousehold or smallcommercial situation:  AC (alternating current) and DC (directcurrent).  The outlets and receptacles in your house all useAC power,while a battery uses DC power.  Most generators produce ACpower, whilesolar panels produce DC power.   The energy that a solar system produceswhile the sun is out, in the form of DC power, is stored in aset ofbatteries for later.  When this energy is needed, a devicecalled aninverter converts the DC power that was stored in the batterybank bysolar panels to the AC power that your lights, stereo, computer, andmost everything else in your house need.